N-30B-2 1 d631956dn30b2.htm NORTHWESTERN MUTUAL VARIABLE LIFE ACCOUNTS Northwestern Mutual Variable Life Accounts

LOGO

March 11, 2014

VIA EDGAR

Securities and Exchange Commission

Division of Investment Management

100 F Street, NE

Washington, DC 20549

 

  RE: Northwestern Mutual Variable Life Account I

EDGAR CIK No. 0000742277; File No. 811-03989

Northwestern Mutual Variable Life Account II

EDGAR CIK No. 0001359314; File No. 811-21933

Dear Sir or Madam:

On behalf of Northwestern Mutual Life Insurance Company and Northwestern Mutual Variable Life Account I and Account II, (“Registrants” or the “Accounts”) we hereby submit, pursuant to Rule 30b2-1 under the Investment Company Act of 1940 (the “1940 Act”), that the Accounts’ annual report for the period ending December 31, 2013 has been transmitted to policy owners as required by Rule 30e-2 under the 1940 Act.

The following annual reports were filed with the Commission via EDGAR on the date indicated below and are incorporated herein by reference:

 

Underlying Investment Company    CIK No.    Date Filed    Registration
No.
Northwestern Mutual Series Fund, Inc.    0000742212    03/10/2014    811-03990
Fidelity VIP Mid Cap Portfolio    0000927384    02/21/2014    811-07205
Fidelity VIP Contrafund Portfolio    0000831016    02/21/2014    811-05511
Neuberger Berman Socially Responsive Portfolio    0000736913    02/24/2014    811-04255
Russell Investment Funds    0000824036    02/25/2014    811-05371
Russell Investment Funds – Life Points Variable Target Portfolio Series    0000824036    02/25/2014    811-05371
Credit Suisse Trust Commodity Return Strategy Portfolio    0000941568    03/05/2014    811-07261

Some of the investment companies above (or series thereof) may not be available under every policy offered by a Registrant.

In addition, performance summaries and financial statements for the Accounts are filed herewith. This filing will also include any other materials required to be filed, if any.

Please direct any questions or comments regarding this filing to the undersigned at 414-665-2418.

Sincerely,

/s/ Barbara Courtney

Barbara Courtney

Director – Mutual Fund Accounting

 

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Contents

 

 

Performance Summaries for the Northwestern Mutual Variable Life Accounts

      8 pages   

Northwestern Mutual Series Fund, Inc. - Annual Report

      274 pages   

Fidelity® VIP Mid Cap Portfolio - Annual Report

      36 pages   

(This report follows the end of the Northwestern Mutual Series Fund, Inc.)

   

Fidelity® VIP Contrafund® Portfolio - Annual Report

      40 pages   

(This report follows the end of the Fidelity® VIP Mid Cap Portfolio)

   

Neuberger Berman AMT Socially Responsive Portfolio -
Annual Report

      32 pages   

(This report follows the end of the Fidelity® VIP Contrafund® Portfolio)

   

Russell Investment Funds - Annual Report

      180 pages   

(This report follows the end of the Neuberger Berman AMT Socially Responsive Portfolio)

   

Russell Investment Funds - LifePoints® Variable Target Portfolio Series - Annual Report

      92 pages   

(This report follows the end of the Russell Investment Funds)

  

Credit Suisse Trust - Commodity Return Strategy Portfolio - Annual Report

      44 pages   

(This report follows the end of the Russell Investment Funds - LifePoints® Variable
Target Portfolio Series)

   

Prospectus Supplements

      7 pages   

 

The performance data quoted represents past performance. Past performance is historical and does not guarantee future performance. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance information visit www.northwesternmutual.com.

Performance Summary (unaudited)    as of December 31, 2013

Variable Life — Policies Issued Before October 11, 1995

 

Total return

(as of December 31, 2013)

    Growth
Stock
Division		     Focused
Appreciation
Division		     Large Cap
Core Stock
Division		     Large Cap
Blend
Division		     Index 500
Stock
Division		     Large
Company
Value
Division		     Domestic
Equity
Division		  

1 year

      35.12 %      28.30 %      27.88 %      30.14 %      31.33 %      30.57 %      33.29 % 

5 years

      127.13 %      120.56 %      101.47 %      108.67 %      120.19 %      102.21 %      123.37 % 

Annualized

      17.83 %      17.14 %      15.04 %      15.85 %      17.10 %      15.12 %      17.44 % 

10 years

      85.18 %      139.07 %      70.86 %      —        90.34 %      —        83.70 % 

Annualized

      6.36 %      9.11 %      5.50 %      —        6.65 %      —        6.27 % 

Since division inception in Variable Life Account(b)

      —        —        —        40.43 %(d)      —        46.13 %(d)      —   

Annualized

      —        —        —        14.52 %      —        16.35 %      —   

Since portfolio inception(b)

      —        —        —        15.49 %(e)      —        18.26 %(e)      —   

Annualized

      —        —        —        2.18 %      —        2.55 %      —   
Variable Complife — Policies Issued Between October 11, 1995 and December 31, 2008   

1 year

      35.26 %      28.43 %      28.01 %      30.27 %      31.46 %      30.70 %      33.43 % 

5 years

      128.26 %      121.66 %      102.47 %      109.71 %      121.29 %      103.22 %      124.48 % 

Annualized

      17.95 %      17.26 %      15.15 %      15.96 %      17.22 %      15.24 %      17.55 % 

10 years

      87.03 %      141.46 %      72.57 %      —        92.24 %      —        85.55 % 

Annualized

      6.46 %      9.22 %      5.61 %      —        6.75 %      —        6.38 % 

Since division inception in Variable Life Account(b)

      —        —        —        40.78 %(d)      —        46.49 %(d)      —   

Annualized

      —        —        —        14.63 %      —        16.47 %      —   

Since portfolio inception(b)

      —        —        —        16.26 %(e)      —        19.05 %(e)      —   

Annualized

      —        —        —        2.28 %      —        2.65 %      —   
Variable Executive Life & Variable Joint Life(a)   

1 year

      35.86 %      29.01 %      28.58 %      30.86 %      32.05 %      31.29 %      34.03 % 

5 years

      133.45 %      126.70 %      107.07 %      114.47 %      126.32 %      107.84 %      129.58 % 

Annualized

      18.48 %      17.78 %      15.67 %      16.49 %      17.75 %      15.76 %      18.08 % 

10 years

      96.21 %      153.31 %      81.04 %      —        101.68 %      —        94.65 % 

Annualized

      6.97 %      9.74 %      6.12 %      —        7.27 %      —        6.89 % 

Since division inception in Variable Life Account(b)

      —        —        —        42.37 %(d)      —        48.15 %(d)      —   

Annualized

      —        —        —        15.15 %      —        17.00 %      —   

Since portfolio inception(b)

      —        —        —        19.80 %(e)      —        22.67 %(e)      —   

Annualized

      —        —        —        2.75 %      —        3.11 %      —   

All total return figures shown above reflect the deduction of portfolio expenses. Returns do not reflect premium deductions such as sales charges, premium taxes, surrender charges or cost of insurance charges. The returns shown would be lower if excluded contract charges were included and/or if underlying portfolio expense reimbursements and fee waivers were not reflected.

Performance quoted for periods prior to each product's inception date is based on the actual investment experience of the portfolio, adjusted for the expenses of the product.

 

(a) Variable Executive Life policies were offered from March 2, 1998 to December 31, 2008. Variable Joint Life policies were offered from December 10, 1998 to December 31, 2008.
(b) See the following footnotes for division and portfolio inception dates.
(d) Division inception on June 30, 2011.
(e) Portfolio inception on April 30, 2007.

 

iv

 

 

Equity
Income
Division		     Mid Cap
Growth
Stock
Division		     Index 400
Stock
Division		     Mid Cap
Value
Division		     Small Cap
Growth Stock
Division		     Index 600
Stock
Division		     Small Cap
Value
Division		     International
Growth
Division		  
  29.23 %      24.85 %      32.44 %      29.53 %      37.84 %      39.90 %      31.04 %      19.15 % 
  110.98 %      109.91 %      158.64 %      117.00 %      136.94 %      152.01 %      129.94 %      71.25 % 
  16.10 %      15.99 %      20.93 %      16.76 %      18.83 %      20.30 %      18.12 %      11.36 % 
  93.92 %      86.37 %      148.08 %      95.52 %      99.14 %      —        147.45 %      75.47 % 
  6.85 %      6.42 %      9.51 %      6.93 %      7.13 %      —        9.48 %      5.78 % 
  —        —        —        —        —        51.00 %(d)      —        —   
  —        —        —        —        —        17.89 %      —        —   
  —        —        —        —        —        61.42 %(e)      —        —   
  —        —        —        —        —        7.44 %      —        —   
                                                             
  29.35 %      24.97 %      32.57 %      29.66 %      37.98 %      40.04 %      31.17 %      19.27 % 
  112.03 %      110.96 %      159.93 %      118.08 %      138.13 %      153.27 %      131.08 %      72.11 % 
  16.22 %      16.10 %      21.05 %      16.88 %      18.95 %      20.42 %      18.24 %      11.47 % 
  95.86 %      88.23 %      150.56 %      97.47 %      101.13 %      —        149.93 %      77.22 % 
  6.95 %      6.53 %      9.62 %      7.04 %      7.24 %      —        9.59 %      5.89 % 
  —        —        —        —        —        51.38 %(d)      —        —   
  —        —        —        —        —        18.01 %      —        —   
  —        —        —        —        —        62.50 %(e)      —        —   
  —        —        —        —        —        7.55 %      —        —   
                                                             
  29.94 %      25.53 %      33.16 %      30.24 %      38.60 %      40.67 %      31.76 %      19.81 % 
  116.84 %      115.75 %      165.83 %      123.04 %      143.53 %      159.02 %      136.33 %      76.01 % 
  16.74 %      16.62 %      21.60 %      17.40 %      19.48 %      20.97 %      18.77 %      11.97 % 
  105.47 %      97.47 %      162.85 %      107.16 %      111.00 %      —        162.20 %      85.92 % 
  7.47 %      7.04 %      10.15 %      7.56 %      7.75 %      —        10.12 %      6.40 % 
  —        —        —        —        —        53.09 %(d)      —        —   
  —        —        —        —        —        18.54 %      —        —   
  —        —        —        —        —        67.45 %(e)      —        —   
  —        —        —        —        —        8.03 %      —        —   

 

v

Performance Summary (unaudited), continued    as of December 31, 2013

Variable Life — Policies Issued Before October 11, 1995

 

Total return

(as of December 31, 2013)

    Research
International
Core Division		     International
Equity
Division		     Emerging
Markets
Equity
Division		     Money
Market
Division		     Short-Term
Bond
Division		     Select
Bond
Division		     Long-Term
U.S.
Government
Bond
Division		  

1 year

      18.27 %      20.71 %      (5.67 %)      (0.45 %)      0.00 %(h)      (2.69 %)      (13.75 %) 

5 years

      75.70 %      84.91 %      87.86 %      (1.30 %)      11.57 %      24.82 %      16.13 % 

Annualized

      11.93 %      13.08 %      13.44 %      (0.26 %)      2.21 %      4.53 %      3.04 % 

10 years

      —        107.37 %      —        13.46 %      —        47.75 %      —   

Annualized

      —        7.57 %      —        1.27 %      —        3.98 %      —   

Since division inception in Variable Life Account(b)

      15.14 %(d)      —        (9.25 %)(d)      —        0.81 %(d)      —        11.07 %(d) 

Annualized

      5.79 %      —        (3.80 %)      —        0.32 %      —        4.28 % 

Since portfolio inception(b)

      5.53 %(e)      —        3.96 %(e)      —        17.06 %(e)      —        49.45 %(e) 

Annualized

      0.81 %      —        0.58 %      —        2.39 %      —        6.21 % 

Current yield(g)

            0.04 %       
Variable Complife — Policies Issued Between October 11, 1995 and December 31, 2008   

1 year

      18.39 %      20.83 %      (5.58 %)      (0.35 %)      0.10 %      (2.60 %)      (13.66 %) 

5 years

      76.58 %      85.83 %      88.80 %      (0.81 %)      12.13 %      25.44 %      16.71 % 

Annualized

      12.04 %      13.19 %      13.55 %      (0.16 %)      2.32 %      4.64 %      3.14 % 

10 years

      —        109.44 %      —        14.59 %      —        49.23 %      —   

Annualized

      —        7.67 %      —        1.37 %      —        4.08 %      —   

Since division inception in Variable Life Account(b)

      15.43 %(d)      —        (9.02 %)(d)      —        1.07 %(d)      —        11.34 %(d) 

Annualized

      5.90 %      —        (3.70 %)      —        0.42 %      —        4.38 % 

Since portfolio inception(b)

      6.24 %(e)      —        4.65 %(e)      —        17.86 %(e)      —        50.45 %(e) 

Annualized

      0.91 %      —        0.68 %      —        2.49 %      —        6.31 % 

Current yield(g)

            0.04 %       
Variable Executive Life & Variable Joint Life(a)   

1 year

      18.92 %      21.38 %      (5.15 %)      0.10 %      0.55 %      (2.16 %)      (13.27 %) 

5 years

      80.59 %      90.05 %      93.08 %      1.44 %      14.67 %      28.29 %      19.36 % 

Annualized

      12.55 %      13.70 %      14.06 %      0.29 %      2.77 %      5.11 %      3.60 % 

10 years

      —        119.72 %      —        20.22 %      —        56.55 %      —   

Annualized

      —        8.19 %      —        1.86 %      —        4.58 %      —   

Since division inception in Variable Life Account(b)

      16.74 %(d)      —        (7.99 %)(d)      —        2.20 %(d)      —        12.61 %(d) 

Annualized

      6.37 %      —        (3.27 %)      —        0.87 %      —        4.86 % 

Since portfolio inception(b)

      9.47 %(e)      —        7.84 %(e)      —        21.42 %(e)      —        55.02 %(e) 

Annualized

      1.37 %      —        1.14 %      —        2.95 %      —        6.79 % 

Current yield(g)

            0.04 %       

All total return figures shown above reflect the deduction of portfolio expenses. Returns do not reflect premium deductions such as sales charges, premium taxes, surrender charges or cost of insurance charges. The returns shown would be lower if excluded contract charges were included and/or if underlying portfolio expense reimbursements and fee waivers were not reflected.

Performance quoted for periods prior to each product's inception date is based on the actual investment experience of the portfolio, adjusted for the expenses of the product.

 

(a) Variable Executive Life policies were offered from March 2, 1998 to December 31, 2008. Variable Joint Life policies were offered from December 10, 1998 to December 31, 2008.
(b) See the following footnotes for division and portfolio inception dates.
(d) Division inception on June 30, 2011.
(e) Portfolio inception on April 30, 2007.
(g) For the seven-day period ended December 31, 2013, the Money Market Portfolio's yield was 0.04% and was equivalent to a compound effective yield of 0.04%. The seven-day yield does not include deductions that are included in the separate account. The yield quotation more closely reflects the current earnings of the Money Market Portfolio than the total return quotation. Effective December 31, 2008, a portion of the management fee for the Money Market Portfolio has been voluntarily waived. The performance shown for this division would have been lower without the fee waiver. This fee waiver is voluntary and may be revised or terminated at any time.
(h) Returns are less than .005%.

 

vi

 

 

Inflation
Protection
Division		     High Yield
Bond
Division		     Multi-Sector
Bond
Division		     Balanced
Division		     Asset
Allocation
Division		     Fidelity VIP
Mid Cap
Division		     Fidelity VIP
Contrafund
Division		     Neuberger
Berman AMT
Socially
Responsive
Division		  
  (8.83 %)      5.26 %      (2.12 %)      11.47 %      16.03 %      35.13 %      30.24 %      36.85 % 
  24.46 %      104.31 %      59.67 %      66.06 %      80.85 %      142.58 %      127.86 %      132.51 % 
  4.47 %      15.36 %      9.81 %      10.68 %      12.58 %      19.39 %      17.91 %      18.38 % 
  —        100.28 %      —        63.08 %      73.51 %      171.04 %      123.12 %      102.90 % 
  —        7.19 %      —        5.01 %      5.67 %      10.49 %      8.36 %      7.33 % 
  3.47 %(d)      —        13.50 %(d)      —        —        —        —        —   
  1.37 %      —        5.19 %      —        —        —        —        —   
  29.92 %(e)      —        48.95 %(e)      —        —        —        —        —   
  4.00 %      —        6.15 %      —        —        —        —        —   
             
                                                             
  (8.74 %)      5.36 %      (2.02 %)      11.58 %      16.15 %      35.26 %      30.37 %      36.99 % 
  25.08 %      105.33 %      60.46 %      66.89 %      81.76 %      143.79 %      129.00 %      133.67 % 
  4.58 %      15.48 %      9.92 %      10.79 %      12.69 %      19.51 %      18.02 %      18.50 % 
  —        102.28 %      —        64.71 %      75.25 %      173.75 %      125.36 %      104.93 % 
  —        7.30 %      —        5.12 %      5.77 %      10.60 %      8.46 %      7.44 % 
  3.72 %(d)      —        13.78 %(d)      —        —        —        —        —   
  1.47 %      —        5.29 %      —        —        —        —        —   
  30.79 %(e)      —        49.94 %(e)      —        —        —        —        —   
  4.11 %      —        6.26 %      —        —        —        —        —   
             
                                                             
  (8.33 %)      5.84 %      (1.58 %)      12.08 %      16.67 %      35.87 %      30.95 %      37.60 % 
  27.92 %      109.99 %      64.10 %      70.68 %      85.88 %      149.33 %      134.20 %      138.98 % 
  5.05 %      15.99 %      10.41 %      11.29 %      13.20 %      20.05 %      18.55 %      19.03 % 
  —        112.20 %      —        72.79 %      83.85 %      187.19 %      135.71 %      114.35 % 
  —        7.81 %      —        5.62 %      6.28 %      11.13 %      8.95 %      7.92 % 
  4.90 %(d)      —        15.07 %(d)      —        —        —        —        —   
  1.93 %      —        5.76 %      —        —        —        —        —   
  34.77 %(e)      —        54.50 %(e)      —        —        —        —        —   
  4.57 %      —        6.74 %      —        —        —        —        —   
             

 

vii

Performance Summary (unaudited), continued    as of December 31, 2013

Variable Life — Policies Issued Before October 11, 1995

 

Total return

(as of December 31, 2013)

    Russell
Multi-Style
Equity
Division		     Russell
Aggressive
Equity
Division		     Russell Non-
U.S. Division		     Russell
Global Real
Estate
Securities
Division		     Russell Core
Bond
Division		  

1 year

      32.19 %      39.24 %      21.24 %      3.08 %      (1.99 %) 

5 years

      125.41 %      148.02 %      74.49 %      89.51 %      38.60 % 

Annualized

      17.65 %      19.92 %      11.78 %      13.64 %      6.75 % 

10 years

      90.47 %      98.95 %      78.49 %      102.67 %      53.98 % 

Annualized

      6.66 %      7.12 %      5.96 %      7.32 %      4.41 % 

Since division inception in Variable Life Account(b)

      —        —        —        —        —   

Annualized

      —        —        —        —        —   

Since portfolio inception(b)

      —        —        —        —        —   

Annualized

      —        —        —        —        —   
Variable Complife — Policies Issued Between October 11, 1995 and December 31, 2008   

1 year

      32.33 %      39.38 %      21.36 %      3.18 %      (1.89 %) 

5 years

      126.54 %      149.26 %      75.36 %      90.45 %      39.29 % 

Annualized

      17.77 %      20.04 %      11.89 %      13.75 %      6.85 % 

10 years

      92.38 %      100.94 %      80.27 %      104.70 %      55.52 % 

Annualized

      6.76 %      7.23 %      6.07 %      7.43 %      4.51 % 

Since division inception in Variable Life Account(b)

      —        —        —        —        —   

Annualized

      —        —        —        —        —   

Since portfolio inception(b)

      —        —        —        —        —   

Annualized

      —        —        —        —        —   
Variable Executive Life & Variable Joint Life(a)   

1 year

      32.92 %      40.00 %      21.91 %      3.65 %      (1.45 %) 

5 years

      131.68 %      154.92 %      79.34 %      94.78 %      42.46 % 

Annualized

      18.30 %      20.58 %      12.39 %      14.26 %      7.33 % 

10 years

      101.82 %      110.80 %      89.12 %      114.75 %      63.15 % 

Annualized

      7.27 %      7.74 %      6.58 %      7.94 %      5.02 % 

Since division inception in Variable Life Account(b)

      —        —        —        —        —   

Annualized

      —        —        —        —        —   

Since portfolio inception(b)

      —        —        —        —        —   

Annualized

      —        —        —        —        —   

All total return figures shown above reflect the deduction of portfolio expenses. Returns do not reflect premium deductions such as sales charges, premium taxes, surrender charges or cost of insurance charges. The returns shown would be lower if excluded contract charges were included and/or if underlying portfolio expense reimbursements and fee waivers were not reflected.

Performance quoted for periods prior to each product's inception date is based on the actual investment experience of the portfolio, adjusted for the expenses of the product.

 

(a) Variable Executive Life policies were offered from March 2, 1998 to December 31, 2008. Variable Joint Life policies were offered from December 10, 1998 to December 31, 2008.
(b) See the following footnotes for division and portfolio inception dates.
(c) Division inception on November 15, 2013.
(d) Division inception on June 30, 2011.
(e) Portfolio inception on April 30, 2007.
(f) Portfolio inception on February 28, 2006.

 

viii

 

 

Russell
LifePoints
Moderate
Strategy
Division		     Russell
LifePoints
Balanced
Strategy
Division		     Russell
LifePoints
Growth
Strategy
Division		     Russell
LifePoints
Equity Growth
Strategy
Division		     Credit Suisse
Trust
Commodity
Return Strategy
Division		  
  6.20 %      11.81 %      15.92 %      19.16 %      (10.75 %) 
  59.33 %      72.62 %      82.17 %      90.40 %      4.07 % 
  9.76 %      11.54 %      12.74 %      13.75 %      0.80 % 
  —        —        —        —        —   
  —        —        —        —        —   
  12.69 %(d)      17.08 %(d)      19.28 %(d)      21.83 %(d)      1.72 %(c) 
  4.89 %      6.50 %      7.29 %      8.20 %      14.51 % 
  30.81 %(e)      27.79 %(e)      21.11 %(e)      13.18 %(e)      (15.25 %)(f) 
  4.11 %      3.74 %      2.91 %      1.87 %      (2.09 %) 
                                     
  6.31 %      11.93 %      16.04 %      19.27 %      (10.66 %) 
  60.13 %      73.48 %      83.08 %      91.35 %      4.59 % 
  9.87 %      11.65 %      12.86 %      13.86 %      0.90 % 
  —        —        —        —        —   
  —        —        —        —        —   
  12.97 %(d)      17.37 %(d)      19.58 %(d)      22.13 %(d)      1.73 %(c) 
  4.99 %      6.60 %      7.40 %      8.31 %      14.62 % 
  31.68 %(e)      28.64 %(e)      21.92 %(e)      13.94 %(e)      (14.58 %)(f) 
  4.21 %      3.85 %      3.02 %      1.98 %      (1.99 %) 
                                     
  6.79 %      12.43 %      16.56 %      19.81 %      (10.26 %) 
  63.76 %      77.41 %      87.66 %      95.70 %      6.97 % 
  10.37 %      12.15 %      13.42 %      14.37 %      1.36 % 
  —        —        —        —        —   
  —        —        —        —        —   
  14.25 %(d)      18.70 %(d)      20.93 %(d)      23.52 %(d)      1.79 %(c) 
  5.46 %      7.08 %      7.89 %      8.80 %      15.14 % 
  35.69 %(e)      32.55 %(e)      25.92 %(e)      17.41 %(e)      (11.52 %)(f) 
  4.68 %      4.31 %      3.51 %      2.43 %      (1.55 %) 

 

ix

Performance Summary (unaudited), continued    as of December 31, 2013

Custom Variable Universal Life, Executive Variable Universal Life & Survivorship Variable Universal Life

 

Total return

(as of December 31, 2013)

    Growth
Stock
Division		     Focused
Appreciation
Division		     Large Cap
Core Stock
Division		     Large Cap
Blend
Division		     Index 500
Stock
Division		     Large
Company
Value
Division		     Domestic
Equity
Division		  

1 year

      35.86 %      29.01 %      28.58 %      30.86 %      32.05 %      31.29 %      34.03 % 

5 years

      133.45 %      126.70 %      107.07 %      114.47 %      126.32 %      107.84 %      129.58 % 

Annualized

      18.48 %      17.78 %      15.67 %      16.49 %      17.75 %      15.76 %      18.08 % 

10 years

      96.21 %      153.31 %      81.04 %      —        101.68 %      —        94.65 % 

Annualized

      6.97 %      9.74 %      6.12 %      —        7.27 %      —        6.89 % 

Since division inception in Variable Life Account II

      —        —        —        42.37 %(c)      —        48.15 %(c)      —   

Annualized

      —        —        —        15.15 %      —        17.00 %      —   

Since portfolio inception(a)

      —        —        —        19.80 %(d)      —        22.67 %(d)      —   

Annualized

      —        —        —        2.75 %      —        3.11 %      —   
              

Total return

(as of December 31, 2013)

    International
Growth
Division		     Research
International
Core Division		     International
Equity
Division		         
Emerging
Markets
Equity
Division		     Money
Market
Division		     Short-Term
Bond
Division		     Select Bond
Division		  

1 year

      19.81 %      18.92 %      21.38 %      (5.15 %)      0.10 %      0.55 %      (2.16 %) 

5 years

      76.01 %      80.59 %      90.05 %      93.08 %      1.44 %      14.67 %      28.29 % 

Annualized

      11.97 %      12.55 %      13.70 %      14.06 %      0.29 %      2.77 %      5.11 % 

10 years

      85.92 %      —        119.72 %      —        20.22 %      —        56.55 % 

Annualized

      6.40 %      —        8.19 %      —        1.86 %      —        4.58 % 

Since division inception in Variable Life Account II

      —        16.74 %(c)      —        (7.99 %)(c)      —        2.20 %(c)      —   

Annualized

      —        6.37 %      —        (3.27 %)      —        0.87 %      —   

Since portfolio inception(a)

      —        9.47 %(d)      —        7.84 %(d)      —        21.42 %(d)      —   

Annualized

      —        1.37 %      —        1.14 %      —        2.95 %      —   

Current yield(f)

              0.04 %     
              

Total return

(as of December 31, 2013)

    Fidelity VIP
Contrafund
Division		     Neuberger
Berman AMT
Socially
Responsive
Division		     Russell
Multi-Style
Equity
Division		     Russell
Aggressive
Equity
Division		     Russell Non-
U.S. Division		     Russell
Global Real
Estate
Securities
Division		     Russell Core
Bond
Division		  

1 year

      30.95 %      37.60 %      32.92 %      40.00 %      21.91 %      3.65 %      (1.45 %) 

5 years

      134.20 %      138.98 %      131.68 %      154.92 %      79.34 %      94.78 %      42.46 % 

Annualized

      18.55 %      19.03 %      18.30 %      20.58 %      12.39 %      14.26 %      7.33 % 

10 years

      135.71 %      114.35 %      101.82 %      110.80 %      89.12 %      114.75 %      63.15 % 

Annualized

      8.95 %      7.92 %      7.27 %      7.74 %      6.58 %      7.94 %      5.02 % 

Since division inception in Variable Life Account II

      —        —        —        —        —        —        —   

Annualized

      —        —        —        —        —        —        —   

Since portfolio inception(a)

      —        —        —        —        —        —        —   

Annualized

      —        —        —        —        —        —        —   

All total return figures shown above reflect the deduction of portfolio expenses. Returns do not reflect premium deductions such as sales charges, premium taxes, surrender charges or cost of insurance charges. The returns shown would be lower if excluded contract charges were included and/or if underlying portfolio expense reimbursements and fee waivers were not reflected.

Performance quoted for periods prior to each product's inception date is based on the actual investment experience of the portfolio, adjusted for the expenses of the product.

 

(a) Returns are stated as of the inception date of the portfolio, which precedes the inception date of the division. See the following footnotes for division and portfolio inception dates.
(b) Division inception on November 15, 2013.
(c) Division inception on June 30, 2011.
(d) Portfolio inception on April 30, 2007.
(e) Portfolio inception on February 28, 2006.
(f) For the seven-day period ended December 31, 2013, the Money Market Portfolio's yield was 0.04% and was equivalent to a compound effective yield of 0.04%. The seven-day yield does not include deductions that are included in the separate account. The yield quotation more closely reflects the current earnings of the Money Market Portfolio than the total return quotation. Effective December 31, 2008, a portion of the management fee for the Money Market Portfolio has been voluntarily waived. The performance shown for this division would have been lower without the fee waiver. This fee waiver is voluntary and may be revised or terminated at any time.

 

x

 

 

Equity
Income
Division		     Mid Cap
Growth
Stock
Division		     Index 400
Stock
Division		     Mid Cap Value
Division		     Small Cap
Growth Stock
Division		     Index 600
Stock
Division		     Small Cap
Value
Division		  
  29.94 %      25.53 %      33.16 %      30.24 %      38.60 %      40.67 %      31.76 % 
  116.84 %      115.75 %      165.83 %      123.04 %      143.53 %      159.02 %      136.33 % 
  16.74 %      16.62 %      21.60 %      17.40 %      19.48 %      20.97 %      18.77 % 
  105.47 %      97.47 %      162.85 %      107.16 %      111.00 %      —        162.20 % 
  7.47 %      7.04 %      10.15 %      7.56 %      7.75 %      —        10.12 % 
  —        —        —        —        —        53.09 %(c)      —   
  —        —        —        —        —        18.54 %      —   
  —        —        —        —        —        67.45 %(d)      —   
  —        —        —        —        —        8.03 %      —   
           
Long-Term
U.S.
Government
Bond
Division		     Inflation
Protection
Division		     High Yield
Bond
Division		     Multi-Sector
Bond Division		     Balanced
Division		     Asset
Allocation
Division		     Fidelity VIP
Mid Cap
Division		  
  (13.27 %)      (8.33 %)      5.84 %      (1.58 %)      12.08 %      16.67 %      35.87 % 
  19.36 %      27.92 %      109.99 %      64.10 %      70.68 %      85.88 %      149.33 % 
  3.60 %      5.05 %      15.99 %      10.41 %      11.29 %      13.20 %      20.05 % 
  —        —        112.20 %      —        72.79 %      83.85 %      187.19 % 
  —        —        7.81 %      —        5.62 %      6.28 %      11.13 % 
  12.61 %(c)      4.90 %(c)      —        15.07 %(c)      —        —        —   
  4.86 %      1.93 %      —        5.76 %      —        —        —   
  55.02 %(d)      34.77 %(d)      —        54.50 %(d)      —        —        —   
  6.79 %      4.57 %      —        6.74 %      —        —        —   
           
           
Russell
LifePoints
Moderate
Strategy
Division		     Russell
LifePoints
Balanced
Strategy
Division		     Russell
LifePoints
Growth
Strategy
Division		     Russell LifePoints
Equity Growth
Strategy Division		     Credit Suisse
Trust
Commodity
Return Strategy
Division		              
  6.79 %      12.43 %      16.56 %      19.81 %      (10.26 %)     
  63.76 %      77.41 %      87.66 %      95.70 %      6.97 %     
  10.37 %      12.15 %      13.42 %      14.37 %      1.36 %     
  —        —        —        —        —       
  —        —        —        —        —       
  14.25 %(c)      18.70 %(c)      20.93 %(c)      23.52 %(c)      1.79 %(b)     
  5.46 %      7.08 %      7.89 %      8.80 %      15.14 %     
  35.69 %(d)      32.55 %(d)      25.92 %(d)      17.41 %(d)      (11.52 %)(e)     
  4.68 %      4.31 %      3.51 %      2.43 %      (1.55 %)     

 

xi

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